Transformers & Rectifiers India Ltd (Capital Goods - Transformers) — fundamental analysis, earnings data, and key metrics. PE: 30.6. ROE: 23.4%. This stock is not currently in the Nifty 500 momentum outperformers list.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
TARIL's structural margin recovery (17.54% EBITDA margin) and ₹5,450 crore order book provide sustainable earnings growth beyond cyclical recovery.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
₹2,600 crore revenue target (25%+ YoY) to be confirmed by March 2026 results, validating growth sustainability.
Impact: +₹2600 Cr revenue
“Management guidance in Q3 con-call; current run-rate supports target”
Completion of maiden STATCOM transformer order by Q1 FY27, proving diversification beyond core business.
Impact: +₹150 Cr revenue
“Order secured in Q3; new product line with higher margins”
Debt-to-equity ratio reduction to 0.45x by Q4 FY26 through operational cash flow, lowering interest costs.
“Current D/E at 0.55x; strong CFO generation (₹210 crore in 9M FY26)”
Risks that could prevent re-rating or deepen the value trap
Order book execution accelerates faster than capacity expansion
Impact: -150 bps margin impact
Management view: Management addressing through working capital optimization initiatives per Q3 con-call
Monitor: DSO trend in Q4 results
10%+ increase in key raw material prices
Impact: -200 bps margin impact
Management view: Backward integration facility now operational to mitigate volatility
Monitor: Quarterly raw material cost as % of revenue
Regulatory changes in power equipment procurement
Impact: -100 bps margin impact
Management view: Long-standing relationship with Power Grid (award recipient) provides buffer
Monitor: Order conversion rate from inquiries
Forward-looking targets from management for FY26
Revenue Growth Target
25%
Implied PAT Growth
35%
OPM Guidance
17.5%
Capex Plan
₹120 Cr
Credit Growth Target
0%
NIM Guidance
0%
Key Milestones
• ₹2,600 crore revenue by Mar 2026
• Order book to reach ₹8,000 crore by FY26 end
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Transformers & Rectifiers India Ltd's latest quarterly results (Dec 2025) show
Transformers & Rectifiers India Ltd's current PE ratio is 30.6x.
Transformers & Rectifiers India Ltd's price-to-book ratio is 6.1x.
Transformers & Rectifiers India Ltd's fundamental strength based on key financial ratios
Transformers & Rectifiers India Ltd has a debt-to-equity ratio of N/A.
Transformers & Rectifiers India Ltd's return ratios over recent years
Transformers & Rectifiers India Ltd's operating cash flow is positive (FY2025).
Transformers & Rectifiers India Ltd's current dividend yield is 0.07%.
Transformers & Rectifiers India Ltd's shareholding pattern (Dec 2025)
Transformers & Rectifiers India Ltd's promoter holding has remained stable recently.
Transformers & Rectifiers India Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Transformers & Rectifiers India Ltd has 3 key growth catalysts identified from recent earnings analysis
Transformers & Rectifiers India Ltd has 3 key risks worth monitoring
Transformers & Rectifiers India Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Transformers & Rectifiers India Ltd may be worth studying
Transformers & Rectifiers India Ltd investment thesis summary:
Transformers & Rectifiers India Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
